Making Financial Decisions as You Get Older

As we get older it gets more and more difficult to make financial decisions.  And as we begin to realize that we are having difficulty making financial decisions, we become even more cautious.  In fact, some people will be afraid to make any kind of financial decision in case they lose their fortune.  Some clients believe they must have a large amount of cash in their accounts just for emergencies.

Short term memory loss, Alzheimer’s, and dementia are the leading causes for people who need to make decisions about their finances and are no longer able to do so.  At this point, the spouse or the children must take over these kinds of decisions. They must make sure that all of the monthly bills are paid. Also that the person has sufficient money to pay for groceries.

Making Financial Decisions –  Get Help

Not everyone progresses at the same rate. Many people will be able to manage their money well into their old age. A large percentage of people will need help in making decisions of some kind to manage the money. It is this time when the children or the spouses must take over and manage their parent’s money.

If short term memory loss and diseases such as Alzheimer’s and dementia are not a prevalent issue, older adults can make just as good decisions s people in their 20’s based on their extensive life history and experience.  If you find yourself taking more time to make financial investment decisions, you may want to turn to someone you trust and help in making those decisions.

The number one thing to be careful of is not to depend on and put your trust in one person, and not to put all their money into one investment.  Asking questions of the people and getting several people to help you make the decision that you can trust as well as diversifying your investments is the best way to protect the investment.  This is one of the reasons older people were victims of financial fraud as much as $2.9 billion annually because many of these fraudsters picked on elderly people.  You may want to take precautionary means to protect their investments and to avoid becoming the victim of financial fraud.

Children of older parents should gradually insert themselves over an extended period of time depending on their parent’s ability and take over the day to day management of their finances. This can be a delicate issue for everyone and should be handled with care and diplomacy.

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